I recently purchased your eBay mastery course and on page 42 there is a link to an article about Merchant accounts. This link is not working and I have searched your web-site but don’t find the article. Can you tell where to find this article?

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If you are just selling on eBay you probably don’t need more than a PayPal account. PayPal’s fees will be lower than most merchant accounts because there are no monthly fees.

If you are doing over $10,000 a month, or have other reasons for not using PayPal like a two tier affiliate program a merchant account will make sense.

First of all, before you get a merchant account read the details. Some merchant accounts will require you to open a checking account in a far flung bank. This is never a good option.

A merchant account should deposit funds into your bank account on a daily basis. It should work with your bank account, not require you to open a new account somewhere else.

Make sure you understand how your bank charges you. One of my checking accounts lets me deposit 100 separate items a month, and then charges me 15 cents for each additional deposit. Because the merchant account deposits each transaction separately, I was getting charged for the deposits.

I moved to another bank with unlimited electronic transfers and stopped being charged.

Do you need a terminal to swipe cards? If you are only selling online, you won’t need to rent a terminal. You can use a virtual terminal program on your computer.

The first place to look for a merchant account is at your bank. If you have good credit, your banker will provide you with a very competitive rate.

If your credit is poor or if your bank will not help you, Call Glen Caplan at Charge today and ask for advice. I have known Glen for ten years and get my accounts through him. Glen has been really helpful. In fact, Glen has always been able to get me a merchant account.

In one case I did a fund raiser and only needed a merchant account for a few months. No other company would set it up. They all wanted a two year contract. Glen went to bat for me and got me an account without a two year agreement.

Glen knows merchant accounts and providers and he will help you get the right deal.

Glen has been helping small merchants like us set up merchant accounts for years. Tell him I recommended him, and he might waive your set up fees.

When you call Glen you’ll need to be able to tell him your average monthly charges in dollars, and the price of your highest selling item.

When you first get a merchant account, unless you have exemplary credit history, there will be limits on what you can process. Glen will help you find the right account for your needs.

In some cases if you have a high initial volume the processor may hold some of you proceeds for a few months.

In 2005 BofA held all my recurring charges for four months. The charges were for a membership program billed monthly, and the bank thought it was odd that all my clients were billed repeatedly. Once the bank saw no chargebacks or complaints they released the money.

This can challenge your cash flow. That’s why you should talk to your bank FIRST.

This is an important decision. Don’t fall for hard sell tactics. I know someone who fell for the hard sell tactics and ended up with a four year contract. They were paying monthly long after they had sold the business.

Take your time and make the right decision.

Here’s Glen’s Number:

Glen Caplan
1-800-836-4295

Once you get a merchant account watch the fees. Discover and Amex both charge 10 dollars to mail a printed statement. One phone call to each of these companies asking for an emailed statement will save you $20 a month.

Terry

Did this answer your question? If not, try looking at the questions and answers within the PayPal And Other Payment Methods category, or do a search for other questions.

If you are unable to find an answer to your question, send me an email, and I will answer it.

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